African Energy to develop Botswana coal project

African Energy Resources has executed a Joint Development Agreement (JDA) with ACWA Power International for the development of a 300 MW power station and integrated coal mine to be located at the company’s Sese coal deposit in Botswana.

African Energy and ACWA Power have jointly submitted an expression of interest for the 300 MW Greenfield Tender Request recently announced by the Ministry of Minerals, Energy and Water Resources.

The two companies have agreed to cooperate as a single group for:

The preparation and submission of an Expression of Interest (EOI) for the 300 MW power station announced by the government of Botswana.

The preparation and submission of a joint bid in response to a request for proposals issued by the government, or any other proposal requested by the government for the award of the project.

To develop and implement the project in accordance with the terms of the agreement if the consortium is successful in any bid process.

ACWA Power International
ACWA Power will be the lead developer, manager and coordinator within the joint venture. Specific roles will include:

The management of the project.

The financing of the project.

The selection of the technology and configuration of the power station.

The selection of contractors to work on the project.

African Energy Resources
African Energy will act as a co-developer, but has no commitment for additional funding. The company expects proposed costs to be reduced over the next year, as some expenses dedicated to the Sese power project will be borne by the joint venture.

The 300 MW coal fired power generation plant has the ability to deliver power into the grid as early as 2016, and no later than 2019.